Well now they have to deal with it, in an even WORSE situation, jobs are disappearing and houses have barely fallen in price.
Yeah lets ALL thank Labour for their wonderful use of financial decisions.
Your chances of owning your own home?
- Thread starter PiKe
- Start date
Well now they have to deal with it, in an even WORSE situation, jobs are disappearing and houses have barely fallen in price.
Yeah lets ALL thank Labour for their wonderful use of financial decisions.
As stated, I had the wrong end of the stick
Even with shared schemes which is where I assume you got the idea from. They don't withold. The rest of it, you buy it back in chunks.
Only if you want to though no?
it's easily done. still a good idea to go and see a mortgage adviser so you get a clearer picture. i don't understand all of it, it's a learning curve for everyone but it's best to get advice as it's likely the biggest debt one will ever get into.
Indeed, I would if I ever feel that I will buying a house.
At the moment it won't be happening any time soon sadly
But the same could be said for the people who are in their 20s who have an unplanned baby with their partner. Which is a life time commitment, bigger than buying any house.
For me I set out for what I wanted to do before I turned 35, got my house, going a good job I enjoy where I travel the country and not stuck behind a desk all day. Now I plan to start own successful company so I become self employment when I am 35. No life time commitments such as marriage, kids come into it. At least with a mortgage on a house, at some point it will come to an end.
Soldato
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Found a recent article from CML on overdue debt, seems to have stabilised quite well. Guess the sustained low interest rates have managed to stop the situation getting worse.
Interesting when you consider the number of reposessions to be approx 40000 in 2011 and 45000 in 2012.
There were only 18100 first time buyers in June 2011. So the number of repossessions would be almost two months worth of people joining the market.
Links
http://www.cml.org.uk/cml/media/press/3000
http://www.cml.org.uk/cml/media/press/2986
Very good site, never looked at it before only read statistics they provided.
Nice little snippet "There was little change in lending requirements for either first-time buyers and home movers in June. First-time buyers, on average paid a 20% deposit, unchanged since February. First-time buyer deposits are lower than the high of 25% seen throughout 2009, but higher than the historic norm of 10%."
Backs up my research into the market, only very fringe products are really looking for less than the 20%.
You can ask yourself why, but the semi educated
may hazard a guess the banks and building societies aren't convinced we won't see a reduction in values still to come and are hedging their bets to ensure they dont end up with even more neg equity properties on their portfolios.
Interesting when you consider the number of reposessions to be approx 40000 in 2011 and 45000 in 2012.
There were only 18100 first time buyers in June 2011. So the number of repossessions would be almost two months worth of people joining the market.
Links
http://www.cml.org.uk/cml/media/press/3000
http://www.cml.org.uk/cml/media/press/2986
Very good site, never looked at it before only read statistics they provided.
Nice little snippet "There was little change in lending requirements for either first-time buyers and home movers in June. First-time buyers, on average paid a 20% deposit, unchanged since February. First-time buyer deposits are lower than the high of 25% seen throughout 2009, but higher than the historic norm of 10%."
Backs up my research into the market, only very fringe products are really looking for less than the 20%.
You can ask yourself why, but the semi educated
may hazard a guess the banks and building societies aren't convinced we won't see a reduction in values still to come and are hedging their bets to ensure they dont end up with even more neg equity properties on their portfolios.Sort of, most of the schemes after x-time start charging you interest and stuff so you need to sort it out before then. But it's usually 10years or plus. But there's a lot of schemes and all slightly different.
Yup- not good if you own the house, but from the bank's perspective, if you default on the mortgage with 5yrs left of loan and the house has a 50yr lease, the Market value of the house will still be worth more than the remaining loan. Which is why they're still happy to lend.
Yeah if I rented our house out, going rate round here for a 3 bed semi is £750pm and the mortgage is only £650 so I'd make £100 profit on covering the mortgage payment with rental.
Surely you'd just pay off £750 each month instead
Probably, not in that situation though so it's speculation. Would depend on how much I was having to pay in Rent ie if I move somewhere and my rent is then £750pm etc etc
That's if you rented it out privately though, try doing it through an agency and from that £750 they'll likely be taking £65 - 100 dependent on the level of service you want.
Soldato
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I would need to get a better paid job to be able to save up a deposit for a house.
Maybe once my wife has passed her teaching course and she starts working at a school we maybe able to afford to save up.
Maybe once my wife has passed her teaching course and she starts working at a school we maybe able to afford to save up.
Yup - unfortunately, the money you receive from tenants isn't quite all yours.
There will be a letting agent fee usually of 5-10% (more if you're going for full management), then the income will be subject to income tax being 20%/40%/50% depending on how lucky you are.
However, expenses which will offset this taxable income include the interest paid on the mortgage during the year and any repairs/management fees.
This means that you generally need quite a big margin to come away with more cash in the short term.
There will be a letting agent fee usually of 5-10% (more if you're going for full management), then the income will be subject to income tax being 20%/40%/50% depending on how lucky you are.
However, expenses which will offset this taxable income include the interest paid on the mortgage during the year and any repairs/management fees.
This means that you generally need quite a big margin to come away with more cash in the short term.
If only it were that simple. Oh how life would be simple if things worked as they must do in your head
NickXX highlights above the pitfalls, sadly the pie has to be shared with the agent and the taxman
An illustration for you as example on a house at £895pcm with a £113k mortgage outstanding I/O;
Gross Rental Value = £895
Letting agent fee @ 10%+VAT (remember the VAT, the agents never include this which as a non registered individual i have to pay!) = £107pcm
Mortgage Interest on £[email protected]% APR = £197pcm
Buildings insurance = £16pcm
Homecare cover for plumbing and electrics = £10pcm
Result= £895-107-197-16-10= £565
Income tax @ 40% leaves you with around £340 profit per month after tax. This is on an £895 headline with "only" £197 headline cost.
Not that great i am sure you will agree.
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Soldato
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I'm saving around 75% of my wages, 28, single, living with mummy and daddy...
Saved £5.5k so far, target is 15k by Dec 2012.
Saved £5.5k so far, target is 15k by Dec 2012.